I am trying to get a deal done and am having a bit of trouble figuring out how to do it. The owner is trying to sell a 5 unit building that is fully rented. I spoke to him and he is willing to take 170k for it. Attached to this 5 unit building is a mixed use property also for sale (was listed for 47k), it has an apartment upstairs and had a church downstairs. So I am trying to tie up BOTH properties and either buy them No Money down if possible, or wholesale both as a package for a nice fee :) . Here are the numbers:
5 unit building:
Rents: $750 per apartment but rent is low. Should be somewhere in the $850-$900 range.
Each apartment is 3bd/1bth. Bedrooms and bathroom upstairs, and living room, dining room, kitchen and laundry on first floor, and access to basement.
Building needs some repair since its old, but being that its fully rented I assume there aren't any major problems or it would not have passed inspection.
Mortgage on it was taken out for 118k back in Dec. 2011.
City taxes are $7273 annually and school taxes are $5510 annually.
For the attached building:
a mortgage was taken out for $27700 back in April 2010.
City taxes are $3602 annually and school taxes are $3322 annually.
So I was thinking of buying both to have 6 units and a commercial space to rent out for a convenience store or something of the sort. The building is walking distance from a college campus and less than a 5 minute drive to downtown area and 10 minutes from a community college, 5 minutes from a hospital and in the near future there will be a casino about 5 miles from it.
I have a good relationship with the landlord so hopefully he is open to a creative deal. I was thinking about leaving the 5 unit mortgage in place and having him carry back the rest and I make monthly payments to him until I can refinance and cash him out in a few years. But I don't know if there are other better ways to structure this deal. Thanks for any help.
By the way I'm really hoping to get this deal set up to present the offer by end of this week.
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